Question

What is a certificate of incorporation?

A. the taxes of a stockholder must pay if he or she sells ownership in a corporation
B. a license to form a corporation issued by the state government
C. the stocks representing a majority interest in a corporation
D. an annual report filed by a corporation with the Securities and Exchange Commission


Which of the following is one disadvantage of incorporation?


A. limited liability for owners
B. potential loss of control by founders
C. transferable ownership
D. long life



Name two countries that operate the world's largest multinationals today.

Answer 1

B. a license to form a corporation issued by the state government

B. potential loss of control by founders

United States of America and Japan

Step-by-step explanation:

Incorporation is the formal process of registering a business such that the business becomes a separate entity from the owners of the business. On the successful registration/incorporation of a business by the promoters, the government issues a certificate known as the certificate of incorporation.

As such, a certificate of incorporation is a license to form a corporation issued by the state government. Option B

One disadvantage of incorporation is potential loss of control by founders. Other items such as limited liability for owners, transferable ownership and long life are advantages.

The United States of America and Japan operate the world's largest multinationals today.